SBI selects banks for $1.4 billion share sale

State Bank of India, the country’s largest lender, has selected underwriters for an institutional share sale that could raise at least Rs 10,000 crore ($1.4 billion), people with knowledge of the matter said. The government-run lender picked Bank of America Corp., CLSA Ltd. and HSBC Holdings Plc to arrange the offering, according to the people, who asked not to be identified because the information is private. Kotak Mahindra Bank Ltd. and SBI Capital Markets Ltd. were also chosen to work on the deal, the people said.

SBI’s sale will help bolster its capital buffers as it attempts to grow loans at a faster pace. Credit growth in India’s banking system is rising at the fastest pace in five years after a cash crunch in 2018 curtailed new loans from shadow financiers.

The deal will add to the $11.8 billion raised through equity offerings in India over the past 12 months, according to data compiled by Bloomberg. Terms of the offering haven’t been finalised, and details such as the fundraising target could change, the people said. SBI’s board granted approval in October for an equity offering of as much as 200 billion rupees.

A representative for SBI didn’t immediately respond to a request for comment.